Sugar futures extend losses on subdued demand, govt measures

NEW DELHI: Amid fall in spot demand at prevailing levels and the government's move to allocate additional quota, sugarfutures today fell further by Rs 25 to Rs 3,437 per quintal as speculators trimmed positions.

At the National Commodity and Derivatives Exchange, sugar for delivery in October traded lower by Rs 25, or 0.72 per cent, to Rs 3,437 per quintal, with an open interest of 15,520 lots.

In similar fashion, the sweetener for delivery in September shed Rs 19, or 0.55 per cent, to Rs 3,407 per quintal, with an open interest of 43,540 lots.

Marketmen said fall in sugar futures prices was due to decline in spot markets demand and the government's move to release additional 4.2 lakh tonne (LT) sugar in the open market earlier this month to control sharp rise in its prices.

Meanwhile, sugar in the Kolhapur spot market in top producing state, Maharashtra, fell by Rs 9 to Rs 3,457 rupees per 100 kg in yesterday's trade.